Casual Cuts Inc. has total estimated factory overhead for the year of $225,000, divided into four activities: cutting, $90,000; sewing, $22,500 setup, $80,000; and inspection, $32,500. Casual Cuts manufactures two types of men's pants: jeans and khakis. The activity-base usage quantities for each product by each activity are as follows: Cutting Sewing Setup Inspection 500 dlh1,000 dlh 100 inspections 400 500 inspections Jeans 250 setups Khakis 1,000 500 750 1,500 dih 1,500 dih 1,000 setups Each product is budgeted for 10,000 units of production for the year. a. Determine the activity rates for each activity. Cutting Sewing Setup 60 per dih 15 per dih 80 per setup 65 per inspection Inspection b. Determine the factory overhead cost per unit for each product, using activity-based costing. Round your answers to two decimal places Jeans 721 x Khakis 154 |